Footnote:
In: Pacific-Basin Finance Journal, Vol. 56, 2019
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 7, 2015 erstellt
Description:
Previous studies show that profitability does not improve after share issue privatization (SIP) in China. We explore the possibility that the positive privatization effect can be overwhelmed by a negative listing effect, leading to an overall negative or insignificant SIP profitability change. Using the difference-in-differences approach with various matched samples, we show that there is a positive privatization effect and there is a negative listing effect on profitability. We also document evidence of a significant improvement in profitability after separating the “pure” privatization effect from the SIP effect. Our findings are robust to alternative variable specifications and methodological changes